OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.69%) this morning are up +0.44% on favorable stock earnings results, while European stocks are down -0.86%, led by a plunge in Greek bank stocks, after the ECB late yesterday restricted direct access to funding lines for Greek lenders. The ECB said it will no longer accept junk-rated collateral from Greece, citing doubt over the new government’s commitment to previous reform pledges. Greek government bonds sank and Greece’s ASE Stock Index tumbled over 5% as the ECB’s decision will raise financing costs for Greek banks and adds pressure to the newly elected government to moderate its policies or risk sterner measures that may jeopardize its membership within the Eurozone. As expected, the BOE today kept its benchmark interest rate unchanged at 0.50% and maintained its asset purchase target at 375 billion pounds. Asian stocks closed mostly lower: Japan -0.98%, Hong Kong +0.35%, China -1.02%, Taiwan -0.02%, Australia +0.58%, Singapore -0.32%, South Korea -0.72%, India -0.11%. Commodity prices are mixed. Mar crude oil (CLH15 +1.53%) is up +0.39% and Mar gasoline (RBH15 +1.13%) is up +0.71%. Apr gold (GCJ15 -0.20%) is down -0.31%. Mar copper (HGH15 -2.03%) is down -1.95%. Agriculture prices are higher. The dollar index (DXY00 -0.07%) is down -0.07%. EUR/USD (^EURUSD) is up +0.68%. USD/JPY (^USDJPY) is up +0.08%. Mar T-note prices (ZNH15 +0.07%) are up +4 ticks.
The European Commission raised its Eurozone 2015 GDP estimate to 1.3% from a +1.1% projection in Nov, and lowered its 2015 CPI forecast to -0.1%from a Nov estimate of +0.8%, marking the first annual decline in consumer prices since the introduction of the euro in 1999.
German Dec factory orders jumped +4.2% m/m and +3.4% y/y, much better than expectations of +1.5% m/m and +0.7% y/y and the biggest increase in 5 months.
Boston Fed President Rosengren, speaking at an event in Germany, said “There is insufficient evidence that U.S. inflation is clearly trending toward the 2% goal” and that “a policy of patience in the U.S. continues to be appropriate.”
